As the European Commission (EC) sharply downgraded its growth forecasts for the UK for both this year and next, the Bank voted to maintain quantitative easing (QE) at £275bn.

Last month, it surprised markets with an extra £75bn of QE. Speculation had been mounting in recent days that the Bank might provide another shock in light of the deteriorating economic outlook.

Next week, the Bank is expected to slash its growth forecasts for the UK from August's prediction of 1.5pc to around 1pc. It would be the seventh successive downgrade, and is expected to be followed by deep cuts to its 2012 forecast as well. The EC reduced its 2011 UK forecast, last estimated in the Spring, from 1.7pc to 0.7pc, and its 2012 forecast from 2.1pc to 0.6pc.

Economists said the Bank is likely to reveal next week that it expects inflation to drop below its target within two years – a clear signal that it may need to increase QE again.

Michael Saunders, Citi's UK economist, said: "We expect that the QE programme will reach about £500bn eventually, with the next expansion coming soon – the February meeting at the latest, and perhaps in December or January."